The two most important aspects to property investment are planning and research. If you get those two things right you will be a successful property investor.
In terms of planning the first thing you need to do is establish a life plan, in other words make a list of your short, medium and long term goals. If one of your goals is to achieve financial freedom then work out what you will need to achieve this target.
Once you have worked out a time table you need to establish your business. To be a successful property investor to need to treat it like a business. Therefore you need a plan as mentioned. You need to carefully appoint your staff. They should include a property investment finance broker a property lawyer, and importantly a property accountant. If you currently have some of these people and they know less than you do about investing, fire them now. Poor advice can cost you thousands of dollars. In most cases you will still have to pay their bill.
It is also important to seek advice on investment structures, Obtain Pre approval on finance. Do not commence looking for property until you feel completely comfortable with your team and the advise you have been given.
By now you are ready to start your research and you will have worked out your strategy. Read as much as you can, use the internet to research areas. Whether you are looking in your home location or interstate or even overseas narrow your search down to two to three suburbs. Now the real research commences. By obtaining pre approval for finance you know what you have to spend. In the first instance review all the properties on the internet. Once you have a strong feeling for the market, travel there and inspect as many properties as possible until you know the prices better than the agents (That will not take long). Also inspect rental properties; generally the asking price on a rental property will not be far out and it will not take long to establish the rents.
These are the things I do myself, others may well do things differently. One last point is that I never purchase a property without seeing it first. I know many investors do, however it can be a little like playing Russian roulette. Why take the chance. Compared to any property investment the cost of travel and accommodation is insignificant. If you are going to do this your self and it is an interstate or overseas investment allow at lease a week, so that you are taking your time and are not being forced into rushing the purchase. Not everyone has the time. Personally I love doing the research and once you commence you will find it addictive.
Nigel Kibel
http://www.propertyknowhow.com.au
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Originally posted by nkibel:
These are the things I do myself, others may well do things differently. One last point is that I never purchase a property without seeing it first. I know many investors do, however it can be a little like playing Russian roulette. Why take the chance. Compared to any property investment the cost of travel and accommodation is insignificant. If you are going to do this your self and it is an interstate or overseas investment allow at lease a week, so that you are taking your time and are not being forced into rushing the purchase. Not everyone has the time. Personally I love doing the research and once you commence you will find it addictive.I never knew property investors bought property without seeing it first… that would be stupid!
Have a read of the post by Karina on Somersoft….she did a lot of her due diligence over the phone and with photos, and in the process has bought up half of Geraldton.!!
Her NETT equity is up well over 1.0 mil as a result of her efforts.( buying sight unseen, as long as the property fitted her criteria )
Of course it has to be better if you can view the property, but it is not always necessary to do so.
It is possible to build up a relationship with someone who can provide an accurate and honest appraisal of the property and do the viewing on your behalf..
kp
Hey kp,
Couldn’t resist….
Assuming Geralton has 50,000 properties all up, karina would therefore own 25,000 of them.
With an absolutely ginormously massive 1 million dollars of NETT equity, that means she has about $ 40 in each property.
WOW !!! The LVR on her portfolio is about 99.9999 ?? At 80% LVR that means on average he median prices of Geraldton props is about $ 200 a pop.
I think maybe she doesn’t quite own that many at all…
If not, looks like I better go get me some real bargains.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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